Online Credit Card Application - Is it Good or Evil?

The trend is getting bigger and bigger as younger adults enter the job world to accumulate credit cards. The new generations worldwide have grown up with computers. It is almost more "natural" for them to search on the internet than to go to the nearest bank. However, easier and faster does not mean better:

First applying for a credit card instant approval and filling the credit card application are two different processes. The approval of a credit card does not necessarily mean that such a card would be delivered fast. It only suggests that the person is qualified to apply for a credit card. The credit card application is the next step once the "go signal" has been given by the online bank.

Also, it is impossible to get an instant approval if the credit record is not spotless. This approval is only targeted at customers with good credit records. However, because of the competition between banks, a new factor is emerging: Because of the high credit market today, banks are willing to stretch their limits and offer an instant approval program to a wider spectrum of people. This entirely depends on the bank selected to apply the credit card on.

Most banks nowadays provide customers with a credit card application form online. Theoretically, most banks are securing the data and keep them confidential. However, beware of internal employee fraud, (it happened). The information needed is seriously confidential: name of the applicant, current address, social security number, and previous addresses over the years.

This is the most common information asked. It can even be more detailed, such as salary level.

The trend today is to get as many credit cards as possible. With rising living costs, it is handy to get a free reserve. However, some figure are scary: in North America, the average number of credit cards per household is said to be 7 with a recurring balance of 13.500 USD.

How is it possible to pay it back? Often, a second mortgage on the house is taken to clear all the credit cards. Problem is, soon the need of extra cash is back, and a new application is filled out. So faster, is not always better.

Francois Marin

Financial Advisor

http://www.refinance-solutions.info

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